Latest News

• Australia boosts international efforts on climate
• EU can cut CO2 by 30 percent by 2020 at no cost
• New Zealand sets greenhouse gas emissions target
• Nedbank goes carbon neutral
• Carbon trading market expected to remain strong post 2012
• Latest UK carbon auction raises over €56m
• Indonesia issues world's first rules on forestry credit revenue-sharing
• Farm Groups Prevail as House Climate Bill Puts USDA in Charge of Ag Offsets
• Australia's carbon farmers in quiet revolution
• Britain may go back on its promise not to buy ‘permits to pollute’ from poor nations
• New Players, Services to Grow Carbon Trading
• Senate Introduces Bill to Promote Natural Gas in Vehicles
• Asia's carbon trade flourishes in slump
• Australian parliament rejects carbon trade plan
• Climate bill could cause energy revolution If passed, legislation would affect lives in number of ways
• Brazil wants C02 cuts based on historic emissions
• Temporary carbon credits revived in US climate bill
• Kenya: Going Green With Redd
• New Zealand: Carbon credits may pay more than farming
• Democrats, Obama Win Major Victory as House Passes Climate Change Bill
• $93 Million and $100 Million into renewable energy by Secretary Chu and NRE
• Heavy going for cap & trade in US, Australia
• Airline industry targets carbon-free growth by 2020
• A bill before Congress may prove a costly way to reduce greenhouse gases
• Clean energy: America can meet the challenge
• California forests hold one answer to climate change
• Westernfield Holdings announces a major reforestation project in Indonesia
• Carbon Credit Auction Nets $117 Million
• Morgan Stanley Carbon Offset
• Kyoto Treaty and the Carbon Credits
• Energy companies, enviro groups unite on int'l forest offsets
• Industries are Grappling With New Bill on Climate
• Westernfield Holdings Inc. launches new, user friendly webportal
• Global Voluntary Carbon Market Doubled in 2008 to $705M
• BNY Mellon Launches Platform for Carbon Emissions
• Westernfield Holding Inc. Secures Investment from Major Oil Company

Farm Groups Prevail as House Climate Bill Puts USDA in Charge of Ag Offsets

September 28, 2009

As part of the agreement reached last night, House Energy and Commerce Chairman Henry Waxman (D-Calif.) agreed to shift agency oversight for carbon offset programs, projects that would indirectly cut emissions of heat-trapping gases.

The deal puts USDA in charge of programs that would pay farmers and other landowners to conduct the environmentally friendly projects. Waxman said he would seek guidance from the Obama administration to figure out "an appropriate role" for EPA to play in the program.

The offset programs and the federal officials in charge of them could play a significant role in shaping implementation of the massive climate plan on the American landscape. The domestic offset market will be worth $4 billion per year through 2030, according to an EPA analysis released yesterday.

The agreement clears what had been a major sticking point in negotiations on the bill and sides with the position agriculture and farmland conservation groups have been pushing heavily for the past few weeks.

Originally, Waxman's committee put EPA in charge of the program, with the option to work with other federal agencies. But House Agriculture Chairman Collin Peterson (D-Minn.) insisted on giving oversight of the program to USDA -- an issue that both chairmen said proved to be a major sticking point over the past several weeks of negotiations.

"We had a disagreement about who ought to run the program," Waxman told reporters yesterday.

"A lot of the work we did was getting this offset program so it would work," Peterson said last night, after announcing the deal. "Energy and Commerce and EPA did not get what farmers do."

Peterson has insisted that USDA has a better understanding of farmland issues and is better equipped to implement the program, with tens of thousands of employees already involved in monitoring farmland conservation and researchers already studying carbon sequestration.

"That is why we held so firm on that," Peterson told reporters last night. "We really believe that the ag people are the ones that know the most about this and are the ones that should do this."

Waxman concedes

The question of how to deal with offsets has been a controversial one. The bill allows regulated industries that cannot meet the greenhouse gas reductions at the smokestack to buy offset credits by investing in green energy or greenhouse gas reduction projects. The provision could significantly reduce compliance costs for some industries.

It could also be a boon to farmers and other landowners who plant extra trees to absorb carbon dioxide, install methane capture systems over animal waste lagoons or practice no-till farming to store carbon in the soil.

Waxman originally wanted to give oversight of the program to EPA, a setup that won the backing of many environmental groups. Environmental groups have said EPA -- with its strong regulatory and scientific focus -- is best suited for the task of carbon oversight. Those advocates argue that USDA is not a regulatory agency and is unlikely to crack down on questionable offset projects. They say EPA is more likely to stand up against fraud.

In announcing the deal last night, Waxman said that although they disagreed at first, his staff agreed to the compromise plan over the weekend. He said the offset program would still be sound under USDA's oversight.

"The offset program is very important because it will allow reductions in CO2 in the most cost-effective way," Waxman said. "To be sure there are genuine offsets."

Waxman said yesterday that he has not spoken to environmentalists about the USDA offset oversight, but he said staff have been keeping them informed. He didn't think this agreement, or others reached with Peterson, would siphon away green groups' support. "I think we will hold the environmentalists," Waxman said.

Australia's carbon farmers in quiet revolution

September 23, 2009

On the rolling hills of Winona, a fine merino sheep stud, a quiet revolution is taking place which Australian farmers hope will eventually see them selling soil carbon credits in the fight against climate change.

Winona's Colin Seis is one of the country's leading "carbon farmers" and has for the past 10 years been encouraging the extraction of greenhouse gas CO2 from the atmosphere and increasing the carbon content of his soil to improve pastures.

Seis estimates he has sequestered a total of 73,786 tons of CO2 equivalent, or 7,386 tons each year. As he only emits 2,200 tons farming, he has a credit of 5,186 tons of carbon.

Under Australia's planned carbon emissions trading scheme, if Seis continues sequesting carbon and maintains his credit, he could sell 5,186 tons for A$51,860-A$129,650 ($40,706 -$102,086), depending if the price is A$10 a ton or A$25 a ton.

Australia wants a formal carbon trading scheme running by 2011, with agriculture possibly included in 2015.

Australia's planned Emissions Trading Scheme (ETS) will have a fixed A$10 a ton price in the first year, followed by an open market with an expected price of A$25 a ton. But it is unclear what type of credit farmers would be allocated in a future ETS.

"Soil is the largest carbon sink we have control of. It's a major answer (to climate change) yet it's been overlooked," said Seis. "It's so obvious because plants are the only thing taking CO2 out of the atmosphere."

The Chicago Climate Exchange in the United States has been trading soil carbon since 2005 but it is not an official offset under the Kyoto Protocol. The United Nations food and agriculture organization and conservation farmers are pushing for the rules to be changed at the Copenhagen climate conference in December.

QUIET REVOLUTION

Fifth generation farmer Seis said there are about 2,000 "carbon farmers" now in Australia.

Farmers are turning their backs on centuries-old practices brought from England, where paddocks were continually cropped and plowed and drenched with fertilizer and weed killer, and are adopting eco-friendly farming to repair damaged soils.

Carbon farmers are adopting zero or minimum tillage, which does not plough the soil, increasing stock rotation to allow land to rest, sometimes for years, and avoiding bare earth with year-round cover with crops, native grasses and weeds.

All these measures increase the biomass in the soil, making it more fertile, and in turn increase the carbon in the soil. Seis "pasture crops" his 840 hectare (2,100 acre) farm near Gulgong in eastern Australia, planting cereals amongst native grasses to ensure paddocks are covered all year round to allow plants to constantly absorb carbon and limit erosion.

Britain may go back on its promise not to buy ‘permits to pollute’ from poor nations

September 18, 2009

Britain’s plan to cut its carbon dioxide emissions by more than a third by 2022 could be achieved by buying “permits to pollute” from poor countries rather than genuine reductions in domestic emissions, according to documents seen by The Times.

A draft copy of the Government’s energy strategy, due to be published today, reveals that ministers have considered scrapping a commitment made three months ago intended to prevent the UK from buying so-called “carbon offsets” from developing nations. It states that while genuine cuts would be preferable, carbon offsets — where one country is paid to make reductions in emissions on another’s behalf — should be reserved as an “insurance option”.

The report also suggests that the Government might need to overturn a commitment made in the Budget by Alistair Darling that Britain would not resort to carbon offsets to meet its emission reduction targets before 2012.

Ed Miliband, the Energy and Climate Change Secretary, will today set out a plan for UK emissions cuts of 34 per cent by 2022 and at least 80 per cent by 2050 to reduce the threat posed by global warming.

But while the shift to a low-carbon economy is meant to ensure that Britain moves away from imported oil and gas towards lower-carbon energy sources such as wind and nuclear power, a debate is raging over the role that international carbon markets can play in meeting these goals.

Keith Allott, head of climate change at WWF-UK, said that carbon offsetting amounted to little more than an “accounting trick”. “We have a chance to transform the UK economy but that can only be achieved by investing in a green recovery package. If we choose to offset we are just throwing money into a broken mechanism.” Deborah Doane, director of the World Development Movement, said: “Carbon trading places the burden on poor countries to reduce their carbon emissions so that we can continue to pollute.”

But Abyd Karmali, president of the Carbon Markets and Investors Association (CMIA), said: “Carbon offsets are a sensible and economically rational approach for the UK Government. It is critical to have mechanisms that will allow for financial innovation in the environmental space.” He said that the Government could choose to invest directly in projects that reduce emissions, such as wind farms in developing countries like India, as an alternative to more expensive, similar projects in Britain.

He said that ultimately, the UK could pay a country such as Brazil to buy “avoided deforestation credits”. The Government is committed by law to a phased reduction in carbon emissions over three five-year periods starting in 2008. From 2013 emissions should be further reduced to 28 per cent below 1990 levels and the third period, from 2018, should see emissions cut to 34 per cent below 1990 levels.

A spokesman for the Department of Energy and Climate Change said: “The aim is to meet the target for the budget periods through domestic action alone.” Britain is already a member of the EU Emissions Trading Scheme that brokers the exchange of carbon dioxide permits between operators of power stations and factories.

New Players, Services to Grow Carbon Trading

September 16, 2009

Global carbon trading on voluntary markets more than doubled from 2007 to 2008, reaching $708 million. The market will grow again in 2009 as individuals and businesses continue to work to procure carbon offsets, new entry points are opening up and redefining the consumer's role in a market.

Consumer involvement in carbon markets is growing due to new accessible offset programs, exchanges and web-based trading mechanisms. But the rapidly increasing number of services for procuring carbon offsets can make it a challenge to find certificates or documentation that validates the greenhouse-gas reductions.

Some of the main features of the recently proposed American Clean Energy and Security Act are the required 17-percent reduction (from 2005 levels) in greenhouse-gas emissions by 2020 and 83-percent by 2050. The bill would also initially provide carbon permits to emissions-intensive industries and utilities, and later years would transition to permit auctions.

Unlike the European Union Emissions Trading System, the current U.S. carbon market is voluntary, composed of carbon offset projects that follow standards, like the Clean Development Mechanism (CDM), Joint Initiative (JI) standards or the Voluntary Gold Standard (GS VER), and other projects or services that remain uncertified. Companies and services are sprouting up to assist not just corporations, but also individuals.

Households are moving alongside industries towards further energy efficiency, and with even Google experiencing difficulty offsetting their emissions, tackling carbon issues may appear challenging. Carbon credit exchanges have primarily been business-oriented, but a new website is promising to not only better connect consumers with the carbon marketplace, but also to provide reduction incentives.

My Emissions Exchange requires members to calculate their carbon footprint from all sources and submit utility bills for the past year. The voluntary market was a place for individuals and corporations to invest and commit to sustainability, but starting June 15th site members will be able to benefit fiscally, as well as socially.

For each carbon ton reduced, about 3 percent of the average American household energy bill, MyEex members sell carbon credits to bidding companies. Paul Herrgesell, project manager at My Emissions Exchange, has said that carbon credits can be sold between $10 and $25-- all of which is returned to the user.

Membership is free, and companies will then bid to purchase credits from MyEex., which a competitor to services Terrapass or CarbonFund.org.

According to an article in the Times of London published last month, MyEex is working with Lloyd's Register Quality Assurance. Lloyd's is experienced with carbon offsets, as just last month they certified Yacht Carbon Offset's management system.

Exchanges, like the Chicago Carbon Exchange (CCX), doubled in size from 2007 to 2008 to $708 million, according to a recently released report from New Carbon Finance. The CCX is a legally-bound voluntary market that provides verification guidelines, and overtook over-the-counter (non-formal) markets last year.

Last month, Merrill Lynch launched the Green and Gold initiative service, in partnership with ICF International, which will match up businesses and emission-reduction projects that have met the rigorous standards of organizations like the Climate, Community and Biodiversity Alliance (CCBA). More recently, the Bank of New York Mellon (BNYM) has launched their Global Environmental (GEM) platform which will allow customers to manage their carbon portfolios, and will initially support credits fostered by the Kyoto Protocol: Certified Emissions Reductions (CER) and Assigned Amount Units (AAU).

CERs are credits granted through the Clean Development Mechanism (CDM), in return for emissions reductions from renewable technology projects in countries under the Kyoto Protocol.

Tony Nunes, managing director of strategy and product development for BNYM's global corporate trust business, provided some insight into what lay behind the platform's inception. Neutrality was one of the primary goals of the platform, "The neutral architecture allows the market to assign value based on the fundamental qualities of a credit rather than the infrastructure supporting the individual credit type," said Nunes. BNYM began its foray into the carbon market in 2006 when the organization began their custody and registry for Voluntary Carbon Credits (VCS v1 credits). The GEM platform will expand to encompass voluntary standards in the near future

Marlo Raynolds, executive director of Alberta-based Pembina Institute for Appropriate Development, said that the personal carbon credit market will achieve longevity through "transparent and standardized system[s] of verification." It is in this same vein that those pursuing offsets are forced to rigorously research the projects they invest in or rely on proven benchmarks, like the CDM Gold Standard and brought about by organizations like the Climate Group or World Economic Forum.

Do these carbon credits serve all offset projects? Dan Tefft, CEO of Treebanking, Inc., a company that declares itself as "dedicated to healing the planet's ecosystems," said the original carbon offset efforts didn't include combating deforestation. "They didn't understand the science of how trees in forests absorb CO2—forestry and agricultural carbon sequestration was originally [ignored]."

Deforestation was taken into account later through the Reduced Emissions from Deforestation and Land Degradation (REDD), which introduced a system for generating carbon credits by reducing emissions that are released into the atmosphere through deforestation prevention. "Scientists are saying that 20% of greenhouse-gases that are emitted are the direct result of deforestation— especially tropical," Tefft added.

The credit certification that Treebanking works primarily with is the Climate, Community and Biodiversity standards.. Tefft is positive about the market, but emphasizes that any system implemented requires "working with the market and with a significant amount of oversight, otherwise the entire system could be bled dry and money will not go to the projects that need it."

With available certifications and standards, corporations and individuals can protect themselves and their investments from potential issues of fraud. With services like My Emissions Exchange encouraging consumers to further involve themselves in carbon markets and financial services building upon existing standards, certification and regulation development will undoubtedly be spurred— potentially under the watchful eye of cap-and-trade systems.

Clean energy projects, such as those recognized by the CDM, are receiving the legal mechanisms they require outside existing infrastructures, like the Kyoto Protocol through service providers like Merrill Lynch or BNYM. The entrance of large financial players into the market may smooth the road ahead for credit trading, which could be welcomed in a market that has recently seen carbon markets rise in Canada and fall in Australia.

Senate Introduces Bill to Promote Natural Gas in Vehicles

September 11, 2009

A new bill to promote the use of natural gas in vehicles was introduced in the U.S. Senate by Robert Menendez (D-NJ) and co-sponsored by Majority Leader Harry Reid (D-NV) and Senators Orrin Hatch (R-UT).   The New  Advanced Transportation to Give Americans Solutions Act (the NAT GAS Act), introduced by Menendez and co-sponsored by Reid and Hatch, would extend and increase tax credits for natural gas vehicles and refueling stations.  A companion bill was introduced in the House of Representatives in April 2009 by Congressmen John Larson (D-CN), Dan Boren (D-OK) and John Sullivan (R-OK).

The NAT GAS Act would accomplish the following:

* Expand and modify the alternative fueled vehicle and refueling property tax credits as follows:
* Make all dedicated natural gas-fueled vehicles eligible for a credit equal to 80% of the vehicle’s incremental cost. Only some dedicated natural gas vehicles currently can qualify for an 80% federal tax credit.
* Make all bi-fuel natural gas-fueled vehicles eligible for a credit equal to 50% of the vehicle’s incremental cost. This is the first time bi-fuel vehicles would be eligible for a federal tax credit.
* Increase the allowable incremental cost limits to more accurately reflect the cost of producing or converting natural gas vehicles:
* For light-duty vehicle, the purchase tax credit cap would be increased by to $12,500 (currently $5,000).
* For all other vehicle weight classes, the purchase tax credit cap would be doubled.
* Increase the refueling property tax credit from $50,000 to $100,000 per station
* Allow the natural gas vehicle and natural gas fueling infrastructure credits to be transferred by the taxpayer back to the seller or to the lessor
* Allow state and local governmental entities to issue tax exempt bonds in order to finance natural gas vehicle projects
* Allow 100% of the cost of a natural gas vehicle manufacturing facility that is placed in service before January 1, 2015 to be expensed and to be treated as a deduction in the taxable year in which the facility was placed in service.

The bill would create new markets for natural gas in the United States, and take advantage of the new discoveries in this country and the abundant natural gas reserves they contain.  Switching from diesel or gasoline to natural gas also reduces the emission of greenhouse gases.  These emission reductions can be monetized in the form of carbon credits (as a voluntary credit today, and potentially a compliance credit in the future), providing another incentive and revenue stream to move vehicles to the use of natural gas as a transportation fuel.

Older News Page...